Second charge mortgage lending falls
The number of second charge mortgages fell by 2% in September, according to the Finance & Leasing Association (FLA).
A second charge mortgage is separate and additional to your mortgage, usually with a different lender. This extra borrowing is still secured on your property, unlike credit card debt or a personal loan.
The fall in second charge mortgages follows months of growth in the number of borrowers taking such loans. Now consumers are starting to show caution about committing to extra borrowing.
Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “The fall in new business volumes in September comes amid subdued consumer confidence which has affected the housing market as a whole. It follows six consecutive months of growth in second charge mortgage new business volumes which grew by 11% in the first nine months of 2017 to 16,043.”